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2025 Supreme(Kar) 2400

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ASHOK S.KINAGI, J.
 
Ramaiah @ C.N. Ramamurthy, S/o. Late Deppedar Narasimhaiah – Appellant
Versus
N. K. Kotappa, S/o. Late Kote Narasimhaiah – Respondent 
Regular Second Appeal No. 564 Of 2015 (SP)
Decided On : 28-11-2025
 

Advocates Appeared:
For the Appellant : Sri. Renukaradhya R. D., Adv.
For the Respondent: Sri. M. B. Chandra Chooda, Adv., Sri. S. Victor Manoharan, Adv.

The defendants bear the burden to prove hardship in a specific performance contract; failure to do so invalidates dismissing the plaintiff's suit regardless of the trial court's findings.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) and Section 20 - Specific performance of a contract - Plaintiff contended that defendants agreed to sell property for ₹1,20,000/- and received ₹20,000/- as down payment - Defendants denied fulfilling contract, but only defendants 4 and 5 acknowledged the sale agreement. (Paras 4, 18, 19)

(B) Errors of the trial Court - The trial Court dismissed the suit based on failure to prove that hardship to defendants would be more than to plaintiff; however, burden lies on defendants to demonstrate hardship. (Paras 19, 20)

(C) Findings of the First Appellate Court - The appellate court found that the plaintiff was always ready and willing to perform the contract, thus correctly decreeing the suit. (Paras 20, 21)

Facts of the case:
The plaintiff filed a suit for specific performance after the defendants failed to execute a sale deed despite receiving part payment, and the trial court dismissed the case.

Findings of Court:
The First Appellate Court allowed the appeal, confirming that the plaintiff proved the sale agreement and readiness to perform the contract.

Issues: The key issues included whether the plaintiff proved readiness and willingness to fulfill contractual obligations and if the trial Court's dismissal was justified.

Ratio Decidendi: It was established that the burden of proof regarding potential hardship lies with the defendants, and the First Appellate Court rightfully re-appreciated evidence to support the plaintiff's claims.

Result: Regular Second Appeal dismissed; judgment of the First Appellate Court confirmed.

Table of Content
1. factual background of the case (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. procedural history and evidence (Para 8 , 9 , 10)
3. arguments raised regarding contract performance (Para 11 , 12 , 13 , 14)
4. court's analysis of the performance contract (Para 15 , 16 , 17 , 18 , 19 , 20 , 21)
5. dismissal of the regular second appeal (Para 22)

JUDGMENT :

ASHOK S. KINAGI, J.

1. This Regular Second Appeal is filed by the appellants challenging the judgment and decree dated 14.11.2014 passed in R.A.No.70 of 2012 by the learned I Additional Senior Civil Judge and JMFC, Tumkur ('First Appellate Court' for short).

2. For convenience, the parties are referred to based on their ranking before the Trial Court. The appellants were defendants No.1 to 3, respondent No.1 was the plaintiff and other respondents were the other defendants.

3. Brief facts leading rise to the filing of this appeal are as follows:

4. The plaintiff filed a suit against the defendants for the relief of specific performance of a contract. It is the case of the plaintiff that the defendants are the absolute owners of the suit schedule property and agreed to sell the suit schedule property for consideration of ₹1,20,000/- and they have received ₹20,000/- towards the advance sale consideration amount and executed a sale agreement dated 07.12.2007. The plaintiff demanded defendants No. 1 to 3, to receive the balance sale consideration amount and execute a registered sale deed. Despite the request made by the plaintiff, the defendants did not comply with the terms and conditions of the sale agreement. The plaintiff, to prove that he was/is always ready and willing to perform his part of contract got issued a legal notice dated 23.01.2008. Defendant Nos.3 and 4 have received the notice and defendants No.2 and one Kote Rangappa have not claimed the notices. Defendant Nos.1 to 3 and Kote Rangappa have issued an evasive reply on 04.02.2008. Kote Rangappa died on 20.02.2008. The defendants have denied to receive the sale consideration amount and execute a register sale deed. Hence, a cause of action arose for the plaintiff to file a suit for specific performance of a contract. Hence, prays to decree the suit.

5. Initially, defendant Nos.2 and 3 appeared through the counsel, but did not file a written statement. Subsequently filed an application seeking permission to file a written statement. The said application came to be allowed, subject to payment of cost of ₹2,000/-. Defendant Nos.2 and 3 failed to pay the cost, but filed another application seeking reduction of the cost, which was rejected by the trial Court and hence, the written statement filed by defendant Nos.2 and 3 was not taken on record.

6. Defendant Nos.1, 6 and 7 have not filed a written statement.

7. Defendant Nos.4 and 5 filed a written statement admitting the averments made in the plaint. It is also contended that they have executed the sale agreement in favour of the plaintiff and received the earnest money. It is contended that they are ready to execute the registered sale deed as per the terms and conditions of the sale agreement dated 07.12.2007 in favour of the plaintiff, in case defendant Nos.1 to 3, and 6 and 7 co-operate for execution of the sale. Hence, prays to decree the suit of the plaintiff.

8. The trial Court, based on the pleadings of the parties, framed the relevant issues.

9. The plaintiff, to substantiate his case, examined himself as PW1, examined two witnesses as PW2 and PW3 and marked 16 documents as Ex.P1 to Ex.P16. The defendants neither led oral nor documentary evidence. The trial Court, after recording the evidence of the plaintiff's witnesses, hearing both sides and assessing the verbal and documentary evidence, dismissed the suit of the plaintiff vide judgment dated 14.06.2012.

10. The plaintiff, aggrieved by the dismissal of suit in OS No.323 of 2008, preferred an appeal in R.A.No.70 of 2012, on the file of the learned I Additional Senior Civil Judge and JMFC, Tumkur.

11. The First Appellat

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